The Energies Review This Week: January 10th, 2011

[jimfutu11]

As usual, Pitguru Daniel Cronin has collected the latest news on the metal market for traders and investors to support their trading. Once you're one of them, let's have a short view of the market and plan things for the new week!

The Energies Review
For the week of January 24th, 2011

Crude Oil had a bit of a turnaround last week as investors and traders alike sold the energy sector on profit taking and higher inventory supply as the March flatprice come off to $88. This is very key support here at the $88-$87 level so look for prices to stop here first and then figure out where it will go from here. With the selling of the WTI spreads in the March-April now going below -150 and the arbs (wti vs brent) in March looking to head to -10.00 I would say the flatprice wants to run south for now. After $87 the next big support level I see is $82.

Natural Gas continues to make headway and is at its highest point of the year so far at $4.75 as this market looks poised to get to $5.00. This is being propelled by the bitter cold the Northeast is having the last few weeks. I like this market to keep going higher and I believe any pullback should be bought here as prices look very healthy above $4.50.